Adding videos
Google video Beta ;) is live. Uploads works ok. It's quite easy to upload a video. It's also painless to fill out the video information form. When this is done, You have to wait for Google to approve Your video... Google gives no estimation of how long this will take.

Watching videos
Google Video uses a browser plugin based on a modified version of VLC. The plugin is Windows only. You can only watch the videos on Google's web page - You can't embed them on Your blog. There are no "download movie" links. Not very suitable for sharing Your work.

I tried  to watch some of bitlab malmö's uploads. The plain MPEG-4 files worked fine, but a more complex Quicktime movie didn't. The videos downloaded/streamed fast - they started almost instantly. The web page template used for viewing the videos is a bit messy, not a nice viewing experience.

Update: Google's video lock has already been cracked by the Norwegian John Lech Johansen.